Thursday, April 18, 2024

Binance Forms First Board of Directors After Facing Legal Scrutiny: Details.

For Binance, the past few years have not been easy; the company has repeatedly found itself encircled by legal problems. As an aid to CEO Richard Teng, Binance Holdings has formed a seven-member board of directors to provide input on business-related decisions and decision-making for the company. The exchange was suspected of supporting illegal activities, and as a result, Nigerian officials summoned the exchange, which led to the decision.

This is the first time that Binance has established a board of directors in the seven years since its founding. The Barbados ambassador to the United Arab Emirates, Gabriel Abed, has been named to lead Binance’s board of directors. An official blog post disclosed that Heina Chen, the company’s co-founder, and CEO Teng are both members of the board.

Under the direction of CEO Richard Teng, who was appointed in November after Binance reached a settlement with US authorities, this major change in leadership is seen as a fundamental transformation at Binance. Binance has maintained that it has operated without a global headquarters since its founding in China in 2017. However, Teng has stated that it would like to implement a more traditional company structure, which would include designating a headquarters and an efficient board of directors, according to the Binance post.

It makes sense that the corporation would want to add additional industry professionals to lead its operations in light of its recent legal battles.

The US Securities and Exchange Commission (SEC) looked into Binance last year for breaking rules pertaining to commerce in the US. Changpeng Zhao, the exchange’s founder, entered a guilty plea in November 2023 for neglecting to keep up a successful anti-money laundering plan at the business.

Soon after, the US Justice Department, Treasury Department, and Commodity Futures Trading Commission received a settlement payment from Binance totaling $4.3 billion, which prompted Zhao to step down as CEO of the business.

Teng was appointed the exchange’s new CEO after Zhao resigned. But despite Teng’s guidance, Binance’s legal problems don’t appear to be getting any better.

According to reports, Binance CEO Teng was called before Nigeria’s House of Representatives Committee on Financial Crimes earlier this month due to concerns about the exchange’s possible role in money laundering and terrorism financing. Teng’s travel plans to Nigeria for this conference are still unknown, but the company is apparently in a difficult situation after a Binance official who was under the control of Nigerian authorities fled the country.

The Philippines’ announcement of a ban on Binance, citing the exchange’s lack of an official operating licence, has further hampered Binance’s ambition to become the most licenced cryptocurrency exchange globally.

Binance has been building a strong legal staff since 2022 to assist it in resolving legal issues.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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